Placer Dome plans creation of separate Canadian unit

Toronto-listed Placer Dome is forming a separate unit to provide better management of its Canadian operations, which turned out 862,000 oz. gold in 1992.

Douglas Fraser, former manager of the Porgera joint venture in Papua New Guinea, will manage the unit, which is part of a decentralization program. Placer Dome already has units which focus on projects in Australia, South America and the U.S.

The move does not mean that the company’s Vancouver office will become a mere holding company, says spokesman Earl Dunlop. The Canadian unit is another step in a process aimed at allowing regional managers to deal with local issues. Head office will continue to oversee each of the units and focus on opportunities around the world.

Nine of Placer’s 14 mines increased production in the second quarter and 10 of them lowered their cash production costs. The average production cost was US$191 per oz., 3% less than in the 1992 period.

Placer Dome’s share of gold production for the second quarter was 453,000 oz., bringing production for the first half of 1993 to 903,000 oz. (6% lower than a year ago). The drop was attributed mainly to an 89,000-oz. decline in the company’s share of production from Porgera and the absence of production from the Big Bell (Australia) and Marigold (Nevada) mines, which were sold last year.

Porgera’s production declined as a result of lower gold grades and Placer Dome’s reduced equity interest. The Kidston (Australia) and La Coipa (Chile) mines increased production by 44% and 36% respectively.

Significant increases also occurred at the Campbell, Detour Lake and Dome mines in Canada, and the Golden Sunlight mine in the U.S.

Mine interest Year Production Ore reserves

% oz. million oz./

tons ton

Canada

Campbell 100 1992 298,829 4.7 0.550

Detour Lake 100 1992 129,550 6.3 0.155

Dome 100 1992 172,997 9.3 0.137

Dona Lake 100 1992 46,004 0.1 0.225

Equity Silver 100 1992 49,216 0.3 0.123

Kiena 100 1992 81,195 5.3 0.153

Sigma 100 1992 83,909 3.1 0.140

United States

Bald Mountain 100 1992 81,582 21.2 0.047

Cortez

(incl. Pipeline) 60 1992 45,553 24.3 0.114

Golden Sunlight 100 1992 103,870 47.7 0.056

Australia

Granny Smith 60 1992 92,568 8.1 0.049

Kidston 100 1992 189,359 39.7 0.034

Papua New Guinea

Misima 100 1992 374,300 44.7 0.036

Porgera 30 1992 445,523 16.8 0.174

Chile

La Coipa 50 1992 98,091 34.7 0.037